David Teten

JANUARY 19, 2021

This structure allows for alignment on the front end, and real-time flexibility for performance metrics,” says Samira Salman , a family office investor and advisor. . Flexible VCs have created structures based on other company performance metrics than revenues, such as profits or founder salaries. Flexible VC 102: Variations.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Both Sides of the Table

SEPTEMBER 18, 2014

It’s like we need a finance 101 course for entrepreneurs. There were no metrics. Him: On metrics. Me: There is no rational explanation for valuations of A round companies by ANY objective financial measure. If we priced it based on any metrics your company would likely be worth less than 7 figures at your A round.

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

Genuine VC

JULY 19, 2010

With that choice, they’re maximizing their full Series A options, potentially reducing ultimate founder dilution, and retaining flexibility for strategic options (including exit) along the path – all while raising money with a more efficient diligence and decision-making process.

Seed Stage 175

Seed Stage Technical Review Dilution Offshore 175

Gust

SEPTEMBER 17, 2014

It’s like we need a finance 101 course for entrepreneurs. There were no metrics. Him: On metrics. Me: There is no rational explanation for valuations of A round companies by ANY objective financial measure. If we priced it based on any metrics your company would likely be worth less than 7 figures at your A round.

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

The Next Web

FEBRUARY 27, 2014

One of the questions I get, more often than not, is what is the appropriate valuation of my business. This is typically in conjunction with an upcoming financing or pending takeover offer. multiple interested investors competing for the deal, and driving up your valuation in the process). The more scarce a supply (e.g.,

Valuation 167

Valuation Forecast Seed Stage .Net 167

K9 Ventures

OCTOBER 10, 2017

This post is intended to be a dynamic document, and I will attempt to update it from time to time with new questions that may arise or as financing trends evolve. Q: What amount of financing is considered Pre-Seed? It’s a legitimate stage of financing in the venture eco-system as of this writing (October 2017).

Seed Stage 82

Seed Stage Finance Later Stage Equity 82

View from Seed

JUNE 30, 2015

A few weeks ago, Manu Kumar wrote an excellent post detailing the current state of the seed financing landscape. For all of these, the metrics and growth need to be the result of legitimate PMF and execution, not tricks. (If Over time, the frenzy around momentum and growth stage financing will calm down.

Seed Stage 120

Seed Stage Syndicate Syndication Dilution 120

Ben's Blog

AUGUST 17, 2020

When speaking with founders and private growth investors, we hear countless references to “multiples paid” on current or near-term revenue; both obsess over this because a higher multiple translates to a higher valuation. How valuation multiples work Why did multiples become a shortcut-heuristic for estimating valuations in the first place?

Valuation 36

Valuation Balance Sheet Cofounder Forecast 36

The Next Web

SEPTEMBER 29, 2013

You’re learning what the metrics that matter are, what your funnel looks like, and what actions you want your prospects to take. It should never be the financing event that dictates whether to shift or not. Clearly investors should promote the idea that startups need to have clear metrics for terminating the discovery mode.

Metrics 136

Metrics Cofounder Cram Down Liquidity Event 136

ithacaVC

APRIL 5, 2011

It should also provide a combined summary so that it is easy to see who owns what % of the company on a fully diluted and converted basis. Additionally, at the seed stage, investors and the company might want to issue the investors convertible debt to avoid the question of valuation. There are no exceptions to this rule.

Common Stock 45

Common Stock Stock Cap Table Preferred Stock 45

This is going to be BIG.

JUNE 2, 2010

That’s going to be very problematic for anyone expecting an up round—or even a flat valuation. On top of that, when you set out to raise a certain size round, and the round grows on you, you usually wind up taking a lot more dilution than you intended. Drive one key metric. Once you have that, keep your focus simple.

Cap Table 106

Cap Table Seed Stage .Net Venture Capital 106

BeyondVC

JUNE 11, 2007

In the last six months, we have augmented some of our existing venture financing with venture debt as the market has become quite competitive which means pricing and terms are getting more attractive for all of us. The trick for entrepreneurs is to look at bringing on debt concurrent or soon after your close of equity financing.

Intellectual Property 60

Intellectual Property Covenant Warrant Equity 60

abovethecrowd.com

APRIL 20, 2016

Why the Unicorn Financing Market Just Became Dangerous…For All Involved. The pressures of lofty paper valuations, massive burn rates (and the subsequent need for more cash), and unprecedented low levels of IPOs and M&A, have created a complex and unique circumstance which many Unicorn CEOs and investors are ill-prepared to navigate.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

Up and Running

DECEMBER 9, 2014

Maybe you are wondering which metrics to track, or whether or not you should take out a loan for your business. Bates: Good morning and welcome to our CEO panel, “How to Fine-Tune Your Small Business Finances From Funding to Growth” which I think is the direction that we would all like to be going. My name is John Bates.

Small Business 95

Small Business Finance Forecast Metrics 95

Seeing Both Sides

JANUARY 13, 2015

Always testing and trying to run fast tests to put up some strong metrics before running out of money (did I mention we''re running out of money?). Financing: holy crap - we are running out of money in 6 months! Financing: The "hopes and dreams" financing stage is over. 10-50 million. Is it time to consider an exit?

Mezzanine 20

Mezzanine IPO Finance Business Model 20